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GOV. RITTER STATEMENT ON THE BUDGET – Pinnacol

Gov. Bill Ritter issued the following statement today regarding the state budget and Pinnacol Assurance:

“Along with the Joint Budget Committee and bipartisan members of the General Assembly, I have worked extremely hard these past few months to balance the budget to protect as much as possible key priorities like education, transportation and health care, and help position Colorado for a strong recovery. I look forward to continuing to partner with them as we finalize additional cuts and other balancing strategies.

“One idea to help ease the remaining $300 million budget shortfall was to tap into surpluses held by Pinnacol Assurance, the state’s largest workers’ compensation insurance company. Members of my staff and I have tried in good faith to reach an agreement with Pinnacol.

“However, there remain too many unresolved issues and questions for Colorado citizens and Pinnacol shareholders and customers. Therefore, with a budget deadline looming, I have halted negotiations with Pinnacol. Together with my budget office, the JBC and legislative leadership, we are now focusing on a number of other steps to erase the shortfall caused by the economic downturn, without devastating cuts to higher education.

“For the long-term, I believe we must examine Pinnacol’s legal and financial structure, its unique status as a non-taxable, state-created entity, and all aspects of the legislation that governs Pinnacol. This includes a financial and performance audit, an actuarial analysis of Pinnacol’s value and surplus, and a possible refund to its policy holders.

“I appreciate and applaud Senate Majority Leader Brandon Shaffer and the other bill sponsors for raising these important policy and fiscal issues.

Majority Leader Shaffer said: “Extraordinary times require us to make tough decisions. With the shortage of revenues and a severe recession, none of our budget choices are easy, and every decision draws support and criticism. What’s important is that funding for higher education is preserved. All of us pray that we steer the wisest course for a prosperous Colorado.”